Jive makes social business software to improve how employees collaborate and interact with customers. The company moved its headquarters from Portland to Palo Alto in 2010, but still employs about 200 in downtown Portland.

Like many young companies, Jive has been willing to accept losses while it invests in its technology and in recruiting new customers in hopes of building a larger business. Thus far, shareholders have been willing to play along. But today's diminished outlook spooked investors. The stock plunged 16 percent in after-hours trading.

Second-quarter sales totaled $35.2 million, at the top of Jive's forecast range and up 30.6 percent from the same quarter last year. But that's Jive's slowest annual growth to date.

Sales growth will slow further in the current quarter, Jive said. It forecast third-quarter sales between $36 million and $37 million, an increase of 25 to 28 percent from the same quarter a year ago.

For the full year, Jive said it now expects annual sales between $144 million and $146 million. That's down from its prior forecast between $148 million and $153 million.

Jive lost $17.8 million during the second quarter, 19 cents a share. That compares to a loss of $11.6 million, also 19 cents a share, in the second quarter of 2012.

Jive said that it's taking longer to bring new customers on board as its software moves to the "mainstream buyer."

"While the move to mainstream buyers is not without new challenges, we believe the reward for winning this opportunity will be substantial," chief executive Tony Zingale said in a written statement. "We expect the Company to deliver improved execution in the second half of the year, and we believe that Jive is well positioned to be the pure play winner in the social business market."

Jive shares shed $2.72 in after-hours trading this afternoon, falling to 14.35. In the past year the stock has traded between $10.63 and $20.32.